Stagnant home prices and easier to access buy to let borrowing has allowed landlords to add more properties to their portfolios.
The size of the average letting business portfolio went up to 14.1 properties over the last quarter, according to a study by specialist landlord lender Paragon Mortgages.
Confident landlords are also buying more properties than in recent months.
The average portfolio took nine months to grow from 12.5 to 12.9 properties by the end of the first quarter this year - but just three months to jump to 14.1 buy to let homes.
Property investors seem more optimistic about the rental market continuing to prosper, with 21% of landlords saying they expect to buy more letting property during the next three months - up from 18% who planned to buy in the second quarter of last year.
Half (49%) of landlords who want to buy will opt for a terraced home to add to their portfolio.
A quarter (26%) will buy flats or maisonettes, while 23% are planning to purchase semi-detached homes.
Paragon Mortgages managing director John Heron said: “The fact that landlords are planning to make further investments in their property portfolios is positive news.
“It shows their appetite to grow their business to meet the on-going demands from tenants and demonstrates the viability of the UK’s private rented sector.
“The issues around housing supply in the UK are well documented and have been hotly debated over the past few months in particular.
“However, what our research shows is that landlords are investing further in private rental property and they look set to continue to buy over the coming quarters.
“While this will not solve the problems around supply it will make a valuable contribution.”
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With more and young people not expecting to get themselves onto the
property ladder until their 30s, it looks like more millennials are heading
down the route of renting, with many set to continue in the renting sphere
for many years.
A recent study by Accommodation for Students has revealed that two thirds
of students have more than one form of income, meaning that thousands of
students around the country are now working jobs on top of their degree
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